Major events in the news that catch the public’s attention often have an impact on consumer purchases. An upturn in economic conditions can give consumers the confidence to go shopping. On the contrary, a shocking event such as the terrorist attacks of 9/11 can put an extreme dampening effect on purchases. For several months after the attacks businesses in the United States and globally reported a major decrease in sales. During these periods, retail financing, financed purchases, and consumer financing all hang in the balance.

The 2016 Election Year in Retail Financing

This year’s presidential election is proving to have a substantial effect on purchases. Many businesses report sales were more brisk in 2015, but have softened in 2016 as the election gets closer. This year’s election is receiving more attention for what it might do to consumer trends. The two presidential candidates are the most unpopular in modern history. No matter who leads or who wins, more than half the population will feel the country is in trouble.

But the effect goes much further this time. A full 87% of Americans feel the country is going in the wrong direction. By and large this majority feels the White House needs a strong personality who will shake things up. Neither candidate appeals to the public as the person who can accomplish this. The result is a deeply pessimistic public who are proceeding cautiously. Their purchasing is expected to stay conservative until after the election in November.

What Happens After Election Day

Once a new President is sworn in, a positive “honeymoon” period usually follows. Consumers feel optimistic about the future. By March sales begin to soar in many sectors. This positive trend usually continues through summer. This period creates a domino effect of renewed confidence in the market, a major uptick in sales, more financing, and the purchase of larger ticket items.

Keep in mind government economic statistics usually lag behind events by several months. For a more up to the minute reading, ask your local store or a friend who sells on eBay or Amazon how sales are fairing. They can often give you a good idea of consumer habits long before official statistics are available.